Some of the biggest recent oil and natural gas discoveries have come from Africa, and the world’s biggest energy companies are increasingly looking to this country to meet their growing demand.
With many countries, particularly China, rushing to be among the first in line to grab these vital resources, this growing “Chi-Africa” connection promises to be a profitable one. Watch today’s video to learn more.
P.S. With overseas markets consuming more resources every day, I’m showing my Emerging Market Winners members exactly how to play the companies that are best-positioned to meet and profit from these ever-growing demands. Hurry — join us today and get in on my newest trade!
Hi, this is Rudy Martin for Uncommon Wisdom Daily.
As crude oil prices continue to rise, and existing reserves become harder and harder to extract, explorers are looking for new, untapped deposits. And they’re finding them — in Africa.
Just this week, an oil field was discovered in the waters off the West African nation of Sierra Leone, the third such find there since 2009. Offshore oil exploration in Namibia has also spiked. And one of the largest natural gas discoveries in a decade was recently made in Mozambique.
Currently, upstream oil production in Africa is dominated by five countries: Nigeria, Libya, Algeria, Egypt and Angola. Together, they account for 85% of the continent’s oil production, but that number may decrease as more deposits are found throughout the region.
Along with that increased supply, we’re seeing increased demand — not just from industrialized nations but also from emerging markets such as China. China’s booming economy has averaged 9% growth a year for the last two decades. And that kind of expansion requires massive amounts of energy to sustain.
China became a net importer of oil less than 20 years ago, but it’s already the world’s second-largest consumer behind the United States. According to the International Energy Agency, China will surpass the U.S. in oil consumption by the end of this decade, and nearly triple its current import levels by 2035.
The country still gets nearly half of its crude oil from the Middle East, but it’s increasingly looking to Africa to meet its growing energy needs. In 2010, 30% of China’s oil imports came from the continent, making it the second-largest source of imports behind the Middle East.
It’s likely that as the world’s largest oil and gas companies continue to boost their production in Africa, the continent will gain greater stature in the industry, and its relationship with China will continue to expand.
I’m Rudy Martin for Uncommon Wisdom Daily. Thanks for watching.